Question

Qny Ms J K recently made a gift to her 10-year. Alison Ms Jk's marginal income tax rate and Alison's marginal income tax rate In each of the following cases, compute the income tax savings resulting from the gift (a) The gift consisted of rental property general 18 19,100 annual rental income to its owner. -year old daughte tax rate is 37%. ax rate is 12%. mpute the annual o the gift consisted of a 82,200 rent check written by the tenants who lease/ rental property owned by nas. JK. 6 The gift consisted of a 84,625 rent interest coupon from a corporate bond owned by Ms.Jk (c) The gift consisted of a 82,200 rent check writter by the tenants who lease rental property owned by Ms JK d) The gift consisted of a corporate bond paying $ 13300 annual interest to its owner.

Answer 1

(a) Annual Income Tax Savings would be = $ 19,100 * (37%-12%)

= $ 4,775.

(b) There won't be any income tax savings as the bond is owned by Ms. JK.

(c) There won't be any income tax savings as the lease rented property is owned by Ms. JK.

(d) Annual Income Tax Savings would be = $ 13,300 * (37%-12%)

= $ 3,325.